6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of March, 2020

Commission File Number: 001-38024

BeyondSpring Inc.

BeyondSpring Inc.

28 Liberty Street, 39th Floor

New York, New York 10005

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country“), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

On June 11, 2020, BeyondSpring Inc. issued a press release, a copy of which is attached hereto as Exhibit 99.1 and incorporated herein by reference.

The information contained in this report, except the second and third paragraphs of Exhibit 99.1, which contain certain quotes by the Chairman and Chief Executive Officer of BeyondSpring Inc., is hereby incorporated by reference into the Registration Statements on Form F-3, File No. 333-224437 and File No. 333-234193, and the Registration Statement on Form S-8, File No. 333-216639.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BeyondSpring Inc.
By:	/s/ Lan Huang

Name: Lan Huang

Title: Chairman and Chief Executive Officer

Date: June 11, 2020

EXHIBIT INDEX

Exhibit No.	Exhibit
99.1	Press release, dated June 11, 2020.

EX-99.1

Exhibit 99.1

BeyondSpring Reports First-Quarter 2020 Financial Results and Operational Update

- PROTECTIVE-2 (Study 106) Phase 3 Interim Analysis This Month to Evaluate Superiority in CIN -

- PROTECTIVE-2 Phase 2 Shows Positive Results in Chemotherapy Optimization with Potentially Better Clinical Outcomes -

- DUBLIN-3 (Study 103 Phase 3) Second Interim Analysis for NSCLC Received DSMB’s Recommendation to Continue Without Modification -

NEW YORK, June 11, 2020 – BeyondSpring Inc. (the “Company” or “BeyondSpring”) (NASDAQ: BYSI), a global biopharmaceutical company focused on the development of innovative cancer therapies, announced today its financial results and provided an operational update for the three months ended March 31, 2020.

“During the first quarter, we continued to make progress in the two lead indications for Plinabulin for both the prevention of chemotherapy-induced neutropenia (CIN) and treatment of non-small cell lung cancer (NSCLC),” said Dr. Lan Huang, Co-Founder, Chairman and Chief Executive Officer. “Our recent data from PROTECTIVE-2 Phase 2 showed Plinabulin combined with G-CSF improves chemotherapy compliance compared to G-CSF alone, which potentially leads to better clinical outcomes. The Plinabulin-G-CSF combination’s potential to prevent infection and hospitalization becomes even more important to the physicians, patients and the healthcare system in the COVID-19 pandemic. We expect to reach the pre-specified interim analysis for PROTECTIVE-2 Phase 3 this month to evaluate superiority in CIN, which has the potential to mark the first significant enhancement in preventing neutropenia in 30 years.”

“With over 1,200 patients enrolled to date for Plinabulin clinical programs, we believe we are well-positioned to capitalize on our upcoming regulatory milestones with multiple New Drug Application (NDA) filings followed by near term commercial opportunities. Looking ahead, we continue to advance our clinical studies to support our view of Plinabulin as a ‘pipeline in a drug’ and believe its potential in improving standard of care in CIN prevention and cancer treatments will help many patients in need globally.”

Select First-Quarter 2020 and Recent Operational Highlights

Chemotherapy-Induced Neutropenia (CIN)

PROTECTIVE-2 Phase 2 for Chemotherapy-Induced Neutropenia Shows Positive Results in Chemotherapy Optimization with Potentially Better Clinical Outcomes

In June 2020, BeyondSpring announced that PROTECTIVE-2 Phase 2 superiority trial for CIN shows that Plinabulin in combination with Neulasta (pegfilgrastim), a long-lasting G-CSF, which is a predominant therapy to treat CIN, enables more cancer patients to receive the optimal chemotherapy dose and regimen, which potentially leads to better clinical outcomes.

• In breast cancer patients treated with docetaxel, doxorubicin and cyclophosphamide (TAC, a high-risk chemotherapy) with 20mg/m² of Plinabulin combined with 6mg of Neulasta (n=16) compared with 6mg of Neulasta alone (n=22), Plinabulin + G-CSF improved compliance with targeted chemotherapy

• Dose reduction (over 15 percent): only 6.3 percent of patients in the Plinabulin-Neulasta combination arm versus 22.7 percent in Neulasta arm – a 72 percent improvement

• Downgraded regimen (from TAC, to docetaxel and cyclophosphamide, or TC): No (0 percent) patients in the Plinabulin + G-CSF arm downgraded chemotherapy from the TAC regimen to the TC regimen versus 18.2 percent in the Neulasta arm – p < 0.05

Plinabulin’s Mechanism of Action Complements Neulasta in Cancer Treatment

In May 2020, two Company abstracts were presented at this year’s American Society of Clinical Oncology (ASCO) Virtual Scientific Program, evaluating Plinabulin alongside Neulasta.

• BeyondSpring’s e-publication, titled, “Comparison of CD34+ mobilization effects of standard dose pegfilgrastim (Peg) versus low-dose peg combined with plinabulin (Plin),” demonstrates the efficacy of Plinabulin-Neulasta combination in increasing CD34+ counts for patients, with fewer adverse events

1

• Additionally, BeyondSpring’s poster presentation, titled, “Head-to-head comparison of the non-G-CSF small molecule single agent (SA) plinabulin with SA pegfilgrastim for the prevention of docetaxel chemotherapy (chemo)-induced neutropenia (CIN) in the protective-1 trial,” compares Plinabulin versus Neulasta as an effective monotherapy for CIN prevention

Non-Small Cell Lung Cancer (NSCLC)

DSMB Recommends DUBLIN-3 Phase 3 NSCLC to Continue Without Modification

In June 2020, BeyondSpring reported it had reached the pre-specified second interim analysis for DUBLIN-3 for NSCLC treatment with Plinabulin.

• Upon reviewing the efficacy and safety data of over 500 patients at an approximately 300-patient death event, DSMB advised BeyondSpring to continue the study without any modifications

• DUBLIN-3 is a global Phase 3 trial for Plinabulin, in combination with docetaxel versus docetaxel alone, for the treatment of second- / third-line EGFR wild-type NSCLC

• Thus far, over 600 cancer patients have been dosed with Plinabulin, which has demonstrated good tolerability and satisfies the safety database standard of both the U.S. Food and Drug Administration (FDA) and China’s National Medical Products Administration (NMPA)

Intellectual Properties

BeyondSpring Granted U.S. Patent for Plinabulin to Treat Severe CIN from Taxane in Cancer Patients

• In May 2020, the U.S. Patent and Trademark Office (USPTO) granted BeyondSpring a new patent for methods of treating severe CIN in cancer patients treated with taxane with protection through 2033. This patent establishes Plinabulin’s beneficial effects in reducing CIN associated with taxane, one of the most commonly used chemotherapies

• The Company currently owns 76 patents, including 17 issued U.S. patents, for Plinabulin and its analogs with protection through 2036

Financial Results for the Three Months Ended March 31, 2020

Research and development (“R&D”) expenses were $13.7 million for the quarter ended March 31, 2020, compared to $6.3 million for the quarter ended March 31, 2019. The $7.4 million increase was largely attributable to an increase of $4.4 million in clinical trial expenses and an increase of $3.0 million in non-cash share-based compensation.

Selling, general and administrative (“SG&A”) expenses were $2.9 million for the quarter ended March 31, 2020, compared to $1.6 million for the quarter ended March 31, 2019. The $1.3 million increase was mainly due to a $0.6 million increase in commercial and marketing expense, a $0.3 million increase in salary, wages and benefits expense, and a $0.4 million increase in other expenses.

Net loss attributable to the Company was $16.1 million for the quarter ended March 31, 2020, compared to $7.3 million for the quarter ended March 31, 2019.

As of March 31, 2020, the Company had a cash balance of $24.9 million. The Company believes currently available financial resources will be sufficient to support its clinical trials and submit NDAs in the U.S. and China for Plinabulin for the CIN and NSCLC indications, as well as to advance its immuno-oncology pipeline and ubiquitination protein degradation research platform.

Anticipated Milestones

The following outlines the Company’s anticipated upcoming milestones and projected timelines:

• Interim topline data readout for PROTECTIVE-2 Phase 3 for CIN – June 2020

2

• Final data readout for PROTECTIVE-2 Phase 3 for CIN – H2 2020

• Final data readout for PROTECTIVE-1 Phase 3 for CIN – H2 2020

• NDA submission for Plinabulin for CIN in the U.S. – H2 2020

• Final data readout for DUBLIN-3 for NSCLC – H2 2020

• NDA submission for Plinabulin for NSCLC in China – H2 2020

• NDA submission for Plinabulin for NSCLC in the U.S. – H1 2021

About BeyondSpring

BeyondSpring is a global clinical-stage biopharmaceutical company focused on the development of innovative immuno-oncology cancer therapies. BeyondSpring’s lead asset, first-in-class agent Plinabulin, is in a Phase 3 global clinical trial as a direct anticancer agent in the treatment of non-small cell lung cancer (NSCLC) and two Phase 3 clinical programs in the prevention of chemotherapy-induced neutropenia (CIN). BeyondSpring has strong R&D capabilities with a robust pipeline in addition to Plinabulin, including three immuno-oncology assets and a drug discovery platform using the ubiquitination degradation pathway. The Company also has a seasoned management team with many years of experience bringing drugs to the global market. BeyondSpring is headquartered in New York City.

Cautionary Note Regarding Forward-Looking Statements

This press release includes forward-looking statements that are not historical facts. Words such as "will," "expect," "anticipate," "plan," "believe," "design," "may," "future," "estimate," "predict," "objective," "goal," or variations thereof and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are based on BeyondSpring's current knowledge and its present beliefs and expectations regarding possible future events and are subject to risks, uncertainties and assumptions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors including, but not limited to, difficulties raising the anticipated amount needed to finance the Company's future operations on terms acceptable to the Company, if at all, unexpected results of clinical trials, delays or denial in regulatory approval process, results that do not meet our expectations regarding the potential safety, the ultimate efficacy or clinical utility of our product candidates, increased competition in the market, the impact of widespread health developments, including the recent COVID-19 pandemic, and the responses thereto, which could materially and adversely affect, among other things, enrollment of patients in our clinical trials and our expected timeline for data readouts of our clinical trials and certain regulatory filings for our product candidates, unexpected changes to estimates of our expenses, future revenues and capital requirements, and other risks described in BeyondSpring’s most recent Form 20-F on file with the U.S. Securities and Exchange Commission. All forward-looking statements made herein speak only as of the date of this release and BeyondSpring undertakes no obligation to update publicly such forward-looking statements to reflect subsequent events or circumstances, except as otherwise required by law.

Contacts

Scott Eckstein / Caitlin Kasunich

KCSA Strategic Communications

212.896.1210 / 212.896.1241

seckstein@kcsa.com / ckasunich@kcsa.com

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BEYONDSPRING INC.

AUDITED CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2019 AND

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 2020

(Amounts in thousands of U.S. Dollars (“$”), except for number of shares and per share data)

		December 31,			March 31,
	Note	2019			2020
			$			$
					(Unaudited)
Assets
Current assets:
Cash and cash equivalents			35,933			24,917
Advances to suppliers			4,519			4,384
Prepaid expenses and other current assets			410			452
Total current assets			40,862			29,753
Noncurrent assets:
Property and equipment, net	3		209			203
Operating lease right-of-use assets			2,538			2,607
Other noncurrent assets			946			941
Total noncurrent assets			3,693			3,751
Total assets			44,555			33,504
Liabilities and equity
Current liabilities:
Accounts payable			2,537			5,140
Accrued expenses			5,861			4,697
Due to related parties	5		29			42
Current portion of operating lease liabilities			537			643
Other current liabilities	11		1,089			1,685
Total current liabilities			10,053			12,207
Noncurrent liabilities:
Long-term loans	4		1,436			1,413
Operating lease liabilities			1,935			1,892
Total noncurrent liabilities			3,371			3,305
Total liabilities			13,424			15,512
Equity:
Ordinary shares ($0.0001 par value; 500,000,000 shares authorized; 27,885,613 shares and 27,888,906 shares issued and outstanding as of December 31, 2019 and March 31, 2020, respectively)	7		3			3
Additional paid-in capital	7		246,979			250,417
Accumulated deficit	7		(216,845	)		(232,929	)
Accumulated other comprehensive income	7		140			197
Total BeyondSpring Inc.’s shareholder’s equity			30,277			17,688
Noncontrolling interests	7		854			304
Total equity			31,131			17,992
Total liabilities and equity			44,555			33,504

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

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BEYONDSPRING INC.

 UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE LOSS FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND 2020

 (Amounts in thousands of U.S. Dollars (“$”), except for number of shares and per share data)

(Unaudited)

		Three months ended March 31,
	Note	2019			2020
			$			$
Revenue			-			-
Operating expenses:
Research and development			(6,330	)		(13,704	)
Selling, general and administrative			(1,639	)		(2,928	)
Loss from operations			(7,969	)		(16,632	)
Foreign exchange gain (loss), net			173			(74	)
Interest income			6			64
Interest expense			(37	)		(21	)
Other income			-			1
Loss before income tax			(7,827	)		(16,662	)
Income tax benefit	6		-			-
Net loss			(7,827	)		(16,662	)
Less: Net loss attributable to noncontrolling interests			(534	)		(578	)
Net loss attributable to BeyondSpring Inc.			(7,293	)		(16,084	)
Net loss per share
Basic and diluted	10		(0.32	)		(0.58	)
Weighted-average shares outstanding Basic and diluted	10		23,029,362			27,732,449
Other comprehensive loss
Foreign currency translation adjustment (loss) gain			(194	)		53
Comprehensive loss			(8,021	)		(16,609	)
Less: Comprehensive loss attributable to noncontrolling interests			(575	)		(582	)
Comprehensive loss attributable to BeyondSpring Inc.			(7,446	)		(16,027	)

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

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BEYONDSPRING INC.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND 2020

 (Amounts in thousands of U.S. Dollars (“$”))

(Unaudited)

		Three months ended March 31,
	Note	2019			2020
			$			$
Operating activities:
Net loss			(7,827	)		(16,662	)
Adjustments to reconcile net loss to net cash from operating activities:
Share-based compensation	12		371			3,470
Depreciation expenses			23			15
Changes in operating assets and liabilities:
Advances to suppliers			143			135
Due from related parties	5		100			-
Prepaid expenses and other current assets			123			(42	)
Operating lease right-of-use assets			134			(69	)
Other noncurrent assets			(60	)		5
Accounts payable			(620	)		2,603
Accrued expenses			2,377			(1,164	)
Operating lease liabilities			(56	)		63
Other current liabilities			232			596
Net cash used in operating activities			(5,060	)		(11,050	)
Investing activities:
Acquisitions of property and equipment			(4	)		(9	)
Net cash used in investing activities			(4	)		(9	)
Financing activities:
Proceeds from loans	4		2,986			-
Loans from related parties	5		350			14
Net cash provided by financing activities			3,336			14
Effect of foreign exchange rate changes, net			(200	)		29
Net decrease in cash and cash equivalents			(1,928	)		(11,016	)
Cash at beginning of period			3,889			35,933
Cash at end of period			1,961			24,917

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

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BEYONDSPRING INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands of U.S. Dollars (“$”) and Renminbi (“RMB”), except for number of shares and per share data)

1. Nature of the business and basis of preparation

BeyondSpring Inc. (the “Company”) was incorporated in the Cayman Islands on November 21, 2014. The Company and its subsidiaries (collectively, the “Group”) are principally engaged in clinical stage biopharmaceutical activities focusing on the development of innovative cancer therapies. The Company is under the control of Mr. Linqing Jia and Dr. Lan Huang as a couple (collectively, the “Founders”) since its incorporation.

As of March 31, 2020, the subsidiaries of the Company are as follows:

Name of company	Place of incorporation	Date of incorporation	Percentage of ownership by the Company	Principal activities
BeyondSpring	Delaware,
Pharmaceuticals Inc.	United States of America (“U.S.”)	June 18, 2013	100%	Clinical trial activities
BeyondSpring Ltd.	The British Virgin Islands (“BVI”)	December 3, 2014	100%	Holding company
BeyondSpring (HK) Limited	Hong Kong	January 13, 2015	100%	Holding company
Wanchun Biotechnology
Limited	BVI	April 1, 2015	100%	Holding company
Wanchun Biotechnology	The People’s Republic of China
(Shenzhen) Ltd.	(“PRC”)	April 23, 2015	100%	Holding company
Dalian Wanchunbulin
Pharmaceuticals Ltd.
(“Wanchunbulin”)	PRC	May 6, 2015	57.97%	Clinical trial activities
BeyondSpring Pharmaceuticals
Australia PTY Ltd.
(“BeyondSpring Australia”)	Australia	March 3, 2016	100%	Clinical trial activities
Beijing Wanchun Pharmaceutical
Technology Ltd.
(“Beijing Wanchun”)	PRC	May 21, 2018	57.97%	Clinical trial activities
SEED Therapeutics Inc.
(“SEED”)	BVI	June 25, 2019	100%	Holding company
SEED Technology Limited
(“SEED Technology”)	BVI	December 9, 2019	57.97%	Holding company

The accompanying unaudited interim condensed consolidated balance sheet as of March 31, 2020, the unaudited interim condensed consolidated statements of comprehensive loss for the three months ended March 31, 2019 and 2020, the cash flows for the three months ended March 31, 2019 and 2020, and the related footnote disclosures are unaudited. These unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. GAAP for interim financial information using accounting policies that are consistent with those used in the preparation of the Company’s audited consolidated financial statements for the year ended December 31, 2019. Accordingly, these unaudited interim condensed consolidated financial statements do not include all of the information and footnotes required by U.S. GAAP for annual financial statements.

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BEYONDSPRING INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands of U.S. Dollars (“$”) and Renminbi (“RMB”), except for number of shares and per share data)

1. Nature of the business and basis of preparation (continued)

In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all normal recurring adjustments necessary to present fairly the financial position, operating results and cash flows of the Group for each of the periods presented. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of results to be expected for any other interim period or for the full year of 2020. The consolidated balance sheet as of December 31, 2019 was derived from the audited consolidated financial statements at that date but does not include all of the disclosures required by U.S. GAAP for annual financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2019.

2. Summary of significant accounting policies

Basis of consolidation

The unaudited interim condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant intercompany transactions and balances between the Company and its subsidiaries are eliminated upon consolidation.

Going concern

According to Accounting Standards Codification (“ASC”) 205-40, Presentation of Financial Statements - Going Concern (“ASC 205-40”), management must evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. This evaluation initially does not take into consideration the potential mitigating effect of management’s plans that have not been fully implemented as of the date the financial statements are issued. When substantial doubt exists under this methodology, management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial doubt about the Company’s ability to continue as a going concern. The mitigating effect of management’s plans, however, is only considered if both (1) it is probable that the plans will be effectively implemented within one year after the date that the financial statements are issued, and (2) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued.

The Company has incurred operating losses and negative cash flows from operations since inception. To date, the Company has no product revenue and management expects operating losses to continue for the foreseeable future, and has primarily funded these losses through equity financings. The Company incurred a net loss of $16,662 during the three months ended March 31, 2020 and has an accumulated deficit of $232,929 as of March 31, 2020. Net cash used in operations was approximately $11,050 for the three months ended March 31, 2020. As of March 31, 2020, the Company had $17,546 net current assets and $24,917 of cash and cash equivalents on hand.

The Company is implementing a cost reduction plan, which includes the deferral of certain research, development and clinical projects and reduction of administrative expenses until it obtains additional financings. With the implementation of cost reduction plan, the Company anticipates that its current financial resources will enable it to meet its operational expenses and capital expenditures into the second quarter of year 2021.

Therefore, the management believes that the substantial doubt about the Company’s ability to continue as a going concern within one year after the date the financial statements are issued has been alleviated. The accompanying unaudited interim condensed consolidated financial statements have been prepared on a going concern basis.

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BEYONDSPRING INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands of U.S. Dollars (“$”) and Renminbi (“RMB”), except for number of shares and per share data)

2. Summary of significant accounting policies (continued)

Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these financial statements include, but are not limited to share-based compensation, clinical trial accrual, valuation allowance for deferred tax assets, estimating uncertain tax position, measurement of right of use assets and lease liabilities and estimating of useful life for property and equipment. Management bases the estimates on historical experience, known trends and various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates.

Fair value measurements

The Company measures certain financial assets and liabilities at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows:

• Level 1— Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

• Level 2— Other inputs that are directly or indirectly observable in the marketplace.

• Level 3— Unobservable inputs which are supported by little or no market activity.

ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

Financial instruments of the Company primarily include cash and cash equivalents, due from related parties, due to related parties, accounts payable and long-term loans. Except for the long-term loans, the carrying values of these financial instruments approximated their fair value due to their short term nature as of December 31, 2019 and March 31, 2020.

As of December 31, 2019 and March 31, 2020, the total carrying amount of long-term loans was $1,436 and $1,413, compared with an estimated fair value of $1,373 and $1,214, respectively. The fair value of the long-term loans is estimated by discounting cash flows using interest rates currently available for debts with similar terms and maturities (Level 2 fair value measurement).

Recent accounting pronouncements

New accounting standard have not yet been adopted

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This update simplifies the accounting for income taxes as part of the FASB’s overall initiative to reduce complexity in accounting standards. The amendments include removal of certain exceptions to the general principles of ASC 740, and simplification in several other areas such as accounting for a franchise tax (or similar tax) that is partially based on income. The update is effective in fiscal years beginning after December 15, 2020, and interim periods therein, and early adoption is permitted. Certain amendments in this update should be applied retrospectively or modified retrospectively, all other amendments should be applied prospectively. The Company is currently evaluating the impact on its financial statements of adopting this guidance.

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BEYONDSPRING INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands of U.S. Dollars (“$”) and Renminbi (“RMB”), except for number of shares and per share data)

3. Property and equipment, net

Property and equipment consist of the following:

	December 31, 2019			March 31, 2020
		$			$
				(Unaudited)
Office equipment		150			161
Laboratory equipment		114			113
Motor vehicles		23			22
Leasehold improvements		103			103
		390			399
Less: accumulated depreciation		(181	)		(196	)
Property and equipment, net		209			203

Depreciation expenses for the three months ended March 31, 2019 and 2020 were $23 and $15, respectively.

4. Long-term loans

On March 28, 2019, the Company borrowed a three-year term loan with a principal amount of $1,493 (RMB10,000) from China Construction Bank, which bears an annual interest rate of 120.0% of the three-year loan interest rate quoted by the People’s Bank of China. The loan is guaranteed by the shareholder of the Company, Shenzhen Sangel Capital Management Limited Company (“Shenzhen Sangel”) and Mr. Mulong Liu, a shareholder of Shenzhen Sangel. The maturity date of the loan is March 28, 2022.

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BEYONDSPRING INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands of U.S. Dollars (“$”) and Renminbi (“RMB”), except for number of shares and per share data)

5. Related party transactions

Loan from related parties

In October and December 2019, the Company borrowed 60-day interest-free loans totaling of $29 (RMB200) from Dalian Wanchun Biotechnology Co., Ltd. (“Wanchun Biotech”). In February 2020, the Company borrowed 60-day interest-free loans totaling of $14 (RMB100) from Wanchun Biotech. The maturity of the above loans was extended to June 2020.

6. Income taxes

There is no provision for income taxes because the Company and its subsidiaries were in a cumulative loss position for the three months ended March 31, 2019 and 2020.

The Company recorded a full valuation allowance against deferred tax assets for all periods presented. There were no material changes in unrecognized tax benefits and related interest and penalties for the three months ended March 31, 2020. The Company does not anticipate that the amount of existing unrecognized tax benefits will significantly change within the next 12 months.

7. Equity

The movement of equity is as follows:

	BeyondSpring Inc.’s shareholders
										Accumulated
					Additional					other						Non			Total
	Ordinary share				paid-in		Accumulated			comprehensive			Subtotal			controlling			equity
	Shares		Amount		capital		deficit			(loss) gain						interests			(deficit)
				$		$		$			$			$			$			$
Balances at January 1, 2020 (audited)		27,885,613		3		246,979		(216,845	)		140			30,277			854			31,131
Share-based compensation		3,293		-		3,438		-			-			3,438			32			3,470
Foreign currency translation adjustment (loss) gain		-		-		-		-			57			57			(4	)		53
Net loss		-		-		-		(16,084	)		-			(16,084	)		(578	)		(16,662	)
Balances at March 31, 2020 (unaudited)		27,888,906		3		250,417		(232,929	)		197			17,688			304			17,992
Balances at January 1, 2019 (audited)		23,184,612		2		170,950		(178,760	)		42			(7,766	)		(1,616	)		(9,382	)
Share-based compensation		-		-		371		-			-			371			-			371
Foreign currency translation adjustment loss		-		-		-		-			(153	)		(153	)		(41	)		(194	)
Net loss		-		-		-		(7,293	)		-			(7,293	)		(534	)		(7,827	)
Balances at March 31, 2019 (unaudited)		23,184,612		2		171,321		(186,053	)		(111	)		(14,841	)		(2,191	)		(17,032	)

8. Restricted net assets

As a result of PRC laws and regulations, the Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company. As of December 31, 2019 and March 31, 2020, amounts restricted were the net assets of the Company’s PRC subsidiaries, which amounted to $2,032 and $329, respectively.

11

BEYONDSPRING INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands of U.S. Dollars (“$”) and Renminbi (“RMB”), except for number of shares and per share data)

9. Employee defined contribution plan

Full time employees of the Company in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the Company’s PRC subsidiaries make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The Company has no legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits, which were expensed as incurred, were $15 and $26 for the three months ended March 31, 2019 and 2020, respectively.

10. Net loss per share

Basic and diluted net loss per share attributable to ordinary shareholders was calculated as follows:

	Three months ended March 31,
	2019			2020
	(Unaudited)			(Unaudited)
Numerator:
Net loss attributable to BeyondSpring Inc.—basic and diluted	$	(7,293	)	$	(16,084	)
Denominator:
Weighted average number of ordinary shares outstanding—basic and diluted		23,029,362			27,732,449
Net loss per share —basic and diluted	$	(0.32	)	$	(0.58)

The effects of restricted shares and share options were excluded from the calculation of diluted loss per share as their effect would have been anti-dilutive during the three months ended March 31, 2019 and 2020.

11. Supplemental balance sheet information

Other current liabilities consist of the following:

	As of December 31,		As of March 31,
	2019		2020
		$		$
				(Unaudited)
Compensation related		226		207
Professional services		-		543
Other taxes related		798		810
Other		65		125
Total		1,089		1,685

12

BEYONDSPRING INC.

NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands of U.S. Dollars (“$”) and Renminbi (“RMB”), except for number of shares and per share data)

12. Share-based compensation

During the three months ended March 31, 2020, the Company granted a total of 381,301 share options and 3,293 restricted shares, respectively.

The following table summarizes total share-based compensation expense recognized for the three months ended March 31, 2019 and 2020:

	Three months ended March 31,
	2019		2020
		$		$
		(Unaudited)		(Unaudited)
Research and development		156		3,183
Selling, general and administrative		215		287
Total		371		3,470

13

XML

Note 12 - Share-based Compensation (Details Textual)	3 Months Ended
	Mar. 31, 2020 shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)	381,301
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)	3,293

XML

Note 8 - Restricted Net Assets (Details Textual) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Restricted Net Assets	$ 329	$ 2,032

XML

Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of consolidation

The unaudited interim condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant intercompany transactions and balances between the Company and its subsidiaries are eliminated upon consolidation.

Going Concern, Policy [Policy Text Block}

Going concern

According to Accounting Standards Codification (“ASC”)

205

-

40,

Presentation of Financial Statements - Going Concern

(“ASC

205

-

40”

), management must evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within

one

year after the date that the financial statements are issued. This evaluation initially does

not

take into consideration the potential mitigating effect of management’s plans that have

not

been fully implemented as of the date the financial statements are issued. When substantial doubt exists under this methodology, management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial doubt about the Company’s ability to continue as a going concern. The mitigating effect of management’s plans, however, is only considered if both (

1

) it is probable that the plans will be effectively implemented within

one

year after the date that the financial statements are issued, and (

2

) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within

one

year after the date that the financial statements are issued.

The Company has incurred operating losses and negative cash flows from operations since inception. To date, the Company has

no

product revenue and management expects operating losses to continue for the foreseeable future, and has primarily funded these losses through equity financings. The Company incurred a net loss of

$16,662

during the

three

months ended

March 31, 2020

and has an accumulated deficit of

$232,929

as of

March 31, 2020.

Net cash used in operations was approximately

$11,050

for the

three

months ended

March 31, 2020.

As of

March 31, 2020,

the Company had

$17,546

net current assets and

$24,917

of cash and cash equivalents on hand.

The Company is implementing a cost reduction plan, which includes the deferral of certain research, development and clinical projects and reduction of administrative expenses until it obtains additional financings. With the implementation of cost reduction plan, the Company anticipates that its current financial resources will enable it to meet its operational expenses and capital expenditures into the

second

quarter of year

2021.

Therefore, the management believes that the substantial doubt about the Company’s ability to continue as a going concern within

one

year after the date the financial statements are issued has been alleviated. The accompanying unaudited interim condensed consolidated financial statements have been prepared on a going concern basis.

Use of Estimates, Policy [Policy Text Block]

Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these financial statements include, but are

not

limited to share-based compensation, clinical trial accrual, valuation allowance for deferred tax assets, estimating uncertain tax position, measurement of right of use assets and lease liabilities and estimating of useful life for property and equipment. Management bases the estimates on historical experience, known trends and various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair value measurements

The Company measures certain financial assets and liabilities at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a

three

-level hierarchy, as follows:

• Level 1— Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

• Level 2— Other inputs that are directly or indirectly observable in the marketplace.

• Level 3— Unobservable inputs which are supported by little or no market activity.

ASC

820,

Fair Value Measurements and Disclosures

(“ASC

820”

) describes

three

main approaches to measuring the fair value of assets and liabilities: (

1

) market approach; (

2

) income approach and (

3

) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

Financial instruments of the Company primarily include cash and cash equivalents, due from related parties, due to related parties, accounts payable and long-term loans. Except for the long-term loans, the carrying values of these financial instruments approximated their fair value due to their short term nature as of

December 31, 2019

and

March 31, 2020.

As of

December 31, 2019

and

March 31, 2020,

the total carrying amount of long-term loans was

$1,436

and

$1,413,

compared with an estimated fair value of

$1,373

and

$1,214,

respectively. The fair value of the long-term loans is estimated by discounting cash flows using interest rates currently available for debts with similar terms and maturities (Level

2

fair value measurement).

New Accounting Pronouncements, Policy [Policy Text Block]

Recent accounting pronouncements

New accounting standard have

not

yet been adopted

In

December 2019,

the FASB issued ASU

2019

-

12,

 Income Taxes (Topic

740

): Simplifying the Accounting for Income Taxes. This update simplifies the accounting for income taxes as part of the FASB’s overall initiative to reduce complexity in accounting standards. The amendments include removal of certain exceptions to the general principles of ASC

740,

and simplification in several other areas such as accounting for a franchise tax (or similar tax) that is partially based on income. The update is effective in fiscal years beginning after

December 15, 2020,

and interim periods therein, and early adoption is permitted. Certain amendments in this update should be applied retrospectively or modified retrospectively, all other amendments should be applied prospectively. The Company is currently evaluating the impact on its financial statements of adopting this guidance.

XML

Note 5 - Related Party Transactions

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

5. Related party transactions

Loan from related parties

In

October

and

December 2019,

the Company borrowed

60

-day interest-free loans totaling of

$29

(

RMB200

) from Dalian Wanchun Biotechnology Co., Ltd. (“Wanchun Biotech”). In

February 2020,

the Company borrowed

60

-day interest-free loans totaling of

$14

(

RMB100

) from Wanchun Biotech. The maturity of the above loans was extended to

June 2020.

XML

Note 9 - Employee Defined Contribution Plan

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Compensation and Employee Benefit Plans [Text Block]

9. Employee defined contribution plan

Full time employees of the Company in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the Company’s PRC subsidiaries make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The Company has

no

legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits, which were expensed as incurred, were

$15

and

$26

for the

three

months ended

March 31, 2019

and

2020,

respectively.

XML

Audited Consolidated Balance Sheet as of December 31, 2019 and Unaudited Interim Condensed Consolidated Balance Sheet as of March 31, 2020 (Parentheticals) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Ordinary shares, par value (in dollars per share)	$ 0.0001	$ 0.0001
Ordinary shares, authorized (in shares)	500,000,000	500,000,000
Ordinary shares, issued (in shares)	27,888,906	27,885,613
Ordinary shares, outstanding (in shares)	27,888,906	27,885,613

XML

Note 2 - Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Significant Accounting Policies [Text Block]

2. Summary of significant accounting policies

Basis of consolidation

The unaudited interim condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant intercompany transactions and balances between the Company and its subsidiaries are eliminated upon consolidation.

Going concern

According to Accounting Standards Codification (“ASC”)

205

-

40,

Presentation of Financial Statements - Going Concern

(“ASC

205

-

40”

), management must evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within

one

year after the date that the financial statements are issued. This evaluation initially does

not

take into consideration the potential mitigating effect of management’s plans that have

not

been fully implemented as of the date the financial statements are issued. When substantial doubt exists under this methodology, management evaluates whether the mitigating effect of its plans sufficiently alleviates substantial doubt about the Company’s ability to continue as a going concern. The mitigating effect of management’s plans, however, is only considered if both (

1

) it is probable that the plans will be effectively implemented within

one

year after the date that the financial statements are issued, and (

2

) it is probable that the plans, when implemented, will mitigate the relevant conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within

one

year after the date that the financial statements are issued.

The Company has incurred operating losses and negative cash flows from operations since inception. To date, the Company has

no

product revenue and management expects operating losses to continue for the foreseeable future, and has primarily funded these losses through equity financings. The Company incurred a net loss of

$16,662

during the

three

months ended

March 31, 2020

and has an accumulated deficit of

$232,929

as of

March 31, 2020.

Net cash used in operations was approximately

$11,050

for the

three

months ended

March 31, 2020.

As of

March 31, 2020,

the Company had

$17,546

net current assets and

$24,917

of cash and cash equivalents on hand.

The Company is implementing a cost reduction plan, which includes the deferral of certain research, development and clinical projects and reduction of administrative expenses until it obtains additional financings. With the implementation of cost reduction plan, the Company anticipates that its current financial resources will enable it to meet its operational expenses and capital expenditures into the

second

quarter of year

2021.

Therefore, the management believes that the substantial doubt about the Company’s ability to continue as a going concern within

one

year after the date the financial statements are issued has been alleviated. The accompanying unaudited interim condensed consolidated financial statements have been prepared on a going concern basis.

Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions reflected in these financial statements include, but are

not

limited to share-based compensation, clinical trial accrual, valuation allowance for deferred tax assets, estimating uncertain tax position, measurement of right of use assets and lease liabilities and estimating of useful life for property and equipment. Management bases the estimates on historical experience, known trends and various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from these estimates.

Fair value measurements

The Company measures certain financial assets and liabilities at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a

three

-level hierarchy, as follows:

• Level 1— Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

• Level 2— Other inputs that are directly or indirectly observable in the marketplace.

• Level 3— Unobservable inputs which are supported by little or no market activity.

ASC

820,

Fair Value Measurements and Disclosures

(“ASC

820”

) describes

three

main approaches to measuring the fair value of assets and liabilities: (

1

) market approach; (

2

) income approach and (

3

) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

Financial instruments of the Company primarily include cash and cash equivalents, due from related parties, due to related parties, accounts payable and long-term loans. Except for the long-term loans, the carrying values of these financial instruments approximated their fair value due to their short term nature as of

December 31, 2019

and

March 31, 2020.

As of

December 31, 2019

and

March 31, 2020,

the total carrying amount of long-term loans was

$1,436

and

$1,413,

compared with an estimated fair value of

$1,373

and

$1,214,

respectively. The fair value of the long-term loans is estimated by discounting cash flows using interest rates currently available for debts with similar terms and maturities (Level

2

fair value measurement).

Recent accounting pronouncements

New accounting standard have

not

yet been adopted

In

December 2019,

the FASB issued ASU

2019

-

12,

 Income Taxes (Topic

740

): Simplifying the Accounting for Income Taxes. This update simplifies the accounting for income taxes as part of the FASB’s overall initiative to reduce complexity in accounting standards. The amendments include removal of certain exceptions to the general principles of ASC

740,

and simplification in several other areas such as accounting for a franchise tax (or similar tax) that is partially based on income. The update is effective in fiscal years beginning after

December 15, 2020,

and interim periods therein, and early adoption is permitted. Certain amendments in this update should be applied retrospectively or modified retrospectively, all other amendments should be applied prospectively. The Company is currently evaluating the impact on its financial statements of adopting this guidance.

XML

Note 10 - Net Loss Per Share (Tables)

3 Months Ended

Mar. 31, 2020

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three months ended March 31,
	2019			2020
	(Unaudited)			(Unaudited)
Numerator:
Net loss attributable to BeyondSpring Inc.—basic and diluted	$	(7,293	)	$	(16,084	)
Denominator:
Weighted average number of ordinary shares outstanding—basic and diluted		23,029,362			27,732,449
Net loss per share —basic and diluted	$	(0.32	)	$	(0.58	)

XML

Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Revenue from Contract with Customer, Including Assessed Tax			$ 0
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total	(16,662)	(7,827)
Retained Earnings (Accumulated Deficit), Ending Balance	(232,929)		(216,845)
Net Cash Provided by (Used in) Operating Activities, Total	(11,050)	(5,060)
Net Current Assets	17,546
Cash and Cash Equivalents, at Carrying Value, Ending Balance	24,917	$ 1,961	35,933	$ 3,889
Long-term Debt, Total	1,413		1,436
Long-term Debt, Fair Value	$ 1,214		$ 1,373

XML

Audited Consolidated Balance Sheet as of December 31, 2019 and Unaudited Interim Condensed Consolidated Balance Sheet as of March 31, 2020 - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 24,917	$ 35,933
Advances to suppliers	4,384	4,519
Prepaid expenses and other current assets	452	410
Total current assets	29,753	40,862
Noncurrent assets:
Property and equipment, net	203	209
Operating lease right-of-use assets	2,607	2,538
Other noncurrent assets	941	946
Total noncurrent assets	3,751	3,693
Total assets	33,504	44,555
Current liabilities:
Accounts payable	5,140	2,537
Accrued expenses	4,697	5,861
Due to related parties	42	29
Current portion of operating lease liabilities	643	537
Other current liabilities	1,685	1,089
Total current liabilities	12,207	10,053
Noncurrent liabilities:
Long-term loans	1,413	1,436
Operating lease liabilities	1,892	1,935
Total noncurrent liabilities	3,305	3,371
Total liabilities	15,512	13,424
Equity:
Ordinary shares ($0.0001 par value; 500,000,000 shares authorized; 27,885,613 shares and 27,888,906 shares issued and outstanding as of December 31, 2019 and March 31, 2020, respectively)	3	3
Additional paid-in capital	250,417	246,979
Accumulated deficit	(232,929)	(216,845)
Accumulated other comprehensive income	197	140
Total BeyondSpring Inc.’s shareholder’s equity	17,688	30,277
Noncontrolling interests	304	854
Total equity	17,992	31,131
Total liabilities and equity	$ 33,504	$ 44,555

XML

Note 1 - Nature of the Business and Basis of Preparation

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Nature of Operations [Text Block]

1. Nature of the business and basis of preparation

BeyondSpring Inc. (the “Company”) was incorporated in the Cayman Islands on

November 21, 2014.

The Company and its subsidiaries (collectively, the “Group”) are principally engaged in clinical stage biopharmaceutical activities focusing on the development of innovative cancer therapies. The Company is under the control of Mr. Linqing Jia and Dr. Lan Huang as a couple (collectively, the “Founders”) since its incorporation.

As of

March 31, 2020,

the subsidiaries of the Company are as follows:

Name of company	Place of incorporation	Date of incorporation	Percentage of ownership by the Company	Principal activities
BeyondSpring	Delaware,
Pharmaceuticals Inc.	United States of America (“U.S.”)	June 18, 2013	100%	Clinical trial activities
BeyondSpring Ltd.	The British Virgin Islands (“BVI”)	December 3, 2014	100%	Holding company
BeyondSpring (HK) Limited	Hong Kong	January 13, 2015	100%	Holding company
Wanchun Biotechnology
Limited	BVI	April 1, 2015	100%	Holding company
Wanchun Biotechnology	The People’s Republic of China
(Shenzhen) Ltd.	(“PRC”)	April 23, 2015	100%	Holding company
Dalian Wanchunbulin
Pharmaceuticals Ltd.
(“Wanchunbulin”)	PRC	May 6, 2015	57.97%	Clinical trial activities
BeyondSpring Pharmaceuticals
Australia PTY Ltd.
(“BeyondSpring Australia”)	Australia	March 3, 2016	100%	Clinical trial activities
Beijing Wanchun Pharmaceutical
Technology Ltd.
(“Beijing Wanchun”)	PRC	May 21, 2018	57.97%	Clinical trial activities
SEED Therapeutics Inc.
(“SEED”)	BVI	June 25, 2019	100%	Holding company
SEED Technology Limited
(“SEED Technology”)	BVI	December 9, 2019	57.97%	Holding company

The accompanying unaudited interim condensed consolidated balance sheet as of

March 31, 2020,

the unaudited interim condensed consolidated statements of comprehensive loss for the

three

months ended

March 31, 2019

and

2020,

the cash flows for the

three

months ended

March 31, 2019

and

2020,

and the related footnote disclosures are unaudited. These unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. GAAP for interim financial information using accounting policies that are consistent with those used in the preparation of the Company’s audited consolidated financial statements for the year ended

December 31, 2019.

Accordingly, these unaudited interim condensed consolidated financial statements do

not

include all of the information and footnotes required by U.S. GAAP for annual financial statements.

In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all normal recurring adjustments necessary to present fairly the financial position, operating results and cash flows of the Group for each of the periods presented. The results of operations for the

three

months ended

March 31, 2020

are

not

necessarily indicative of results to be expected for any other interim period or for the full year of

2020.

The consolidated balance sheet as of

December 31, 2019

was derived from the audited consolidated financial statements at that date but does

not

include all of the disclosures required by U.S. GAAP for annual financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements for the year ended

December 31, 2019.

XML

Note 11 - Supplemental Balance Sheet Information (Tables)

3 Months Ended

Mar. 31, 2020

Notes Tables

Other Current Liabilities [Table Text Block]

	As of December 31,		As of March 31,
	2019		2020
	$		$
			(Unaudited)
Compensation related		226		207
Professional services		-		543
Other taxes related		798		810
Other		65		125
Total		1,089		1,685

XML

Note 3 - Property and Equipment, Net (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Depreciation, Total	$ 15	$ 23

XML

Note 11 - Supplemental Balance Sheet Information - Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Compensation related	$ 207	$ 226
Professional services	543
Other taxes related	810	798
Other	125	65
Total	$ 1,685	$ 1,089

XML

Note 7 - Equity - Schedule of Stockholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Balances	$ 31,131	$ (9,382)
Share-based compensation	3,470
Foreign currency translation adjustment (loss) gain	53	(194)
Net loss	(16,662)	(7,827)
Share-based compensation		371
Balances	$ 17,992	$ (17,032)
Common Stock [Member]
Balances (in shares)	27,885,613	23,184,612
Balances	$ 3	$ 2
Share-based compensation (in shares)	3,293
Share-based compensation
Foreign currency translation adjustment (loss) gain
Net loss
Share-based compensation
Balances (in shares)	27,888,906	23,184,612
Balances	$ 3	$ 2
Additional Paid-in Capital [Member]
Balances	246,979	170,950
Share-based compensation	3,438
Foreign currency translation adjustment (loss) gain
Net loss
Share-based compensation		371
Balances	250,417	171,321
Retained Earnings [Member]
Balances	(216,845)	(178,760)
Share-based compensation
Foreign currency translation adjustment (loss) gain
Net loss	(16,084)	(7,293)
Share-based compensation
Balances	(232,929)	(186,053)
AOCI Attributable to Parent [Member]
Balances	140	42
Share-based compensation
Foreign currency translation adjustment (loss) gain	57	(153)
Net loss
Share-based compensation
Balances	197	(111)
Parent [Member]
Balances	30,277	(7,766)
Share-based compensation	3,438
Foreign currency translation adjustment (loss) gain	57	(153)
Net loss	(16,084)	(7,293)
Share-based compensation		371
Balances	17,688	(14,841)
Noncontrolling Interest [Member]
Balances	854	(1,616)
Share-based compensation	32
Foreign currency translation adjustment (loss) gain	(4)	(41)
Net loss	(578)	(534)
Share-based compensation
Balances	$ 304	$ (2,191)

XML

Note 6 - Income Taxes

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Income Tax Disclosure [Text Block]

6. Income taxes

There is

no

provision for income taxes because the Company and its subsidiaries were in a cumulative loss position for the

three

months ended

March 31, 2019

and

2020.

The Company recorded a full valuation allowance against deferred tax assets for all periods presented. There were

no

material changes in unrecognized tax benefits and related interest and penalties for the

three

months ended

March 31, 2020.

The Company does

not

anticipate that the amount of existing unrecognized tax benefits will significantly change within the next

12

months.

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Note 10 - Net Loss Per Share

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Earnings Per Share [Text Block]

10. Net loss per share

Basic and diluted net loss per share attributable to ordinary shareholders was calculated as follows:

	Three months ended March 31,
	2019			2020
	(Unaudited)			(Unaudited)
Numerator:
Net loss attributable to BeyondSpring Inc.—basic and diluted	$	(7,293	)	$	(16,084	)
Denominator:
Weighted average number of ordinary shares outstanding—basic and diluted		23,029,362			27,732,449
Net loss per share —basic and diluted	$	(0.32	)	$	(0.58	)

The effects of restricted shares and share options were excluded from the calculation of diluted loss per share as their effect would have been anti-dilutive during the

three

months ended

March 31, 2019

and

2020.

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Note 1 - Nature of the Business and Basis of Preparation (Tables)

3 Months Ended

Mar. 31, 2020

Notes Tables

Schedule of Subsidiaries [Table Text Block]

Name of company	Place of incorporation	Date of incorporation	Percentage of ownership by the Company	Principal activities
BeyondSpring	Delaware,
Pharmaceuticals Inc.	United States of America (“U.S.”)	June 18, 2013	100%	Clinical trial activities
BeyondSpring Ltd.	The British Virgin Islands (“BVI”)	December 3, 2014	100%	Holding company
BeyondSpring (HK) Limited	Hong Kong	January 13, 2015	100%	Holding company
Wanchun Biotechnology
Limited	BVI	April 1, 2015	100%	Holding company
Wanchun Biotechnology	The People’s Republic of China
(Shenzhen) Ltd.	(“PRC”)	April 23, 2015	100%	Holding company
Dalian Wanchunbulin
Pharmaceuticals Ltd.
(“Wanchunbulin”)	PRC	May 6, 2015	57.97%	Clinical trial activities
BeyondSpring Pharmaceuticals
Australia PTY Ltd.
(“BeyondSpring Australia”)	Australia	March 3, 2016	100%	Clinical trial activities
Beijing Wanchun Pharmaceutical
Technology Ltd.
(“Beijing Wanchun”)	PRC	May 21, 2018	57.97%	Clinical trial activities
SEED Therapeutics Inc.
(“SEED”)	BVI	June 25, 2019	100%	Holding company
SEED Technology Limited
(“SEED Technology”)	BVI	December 9, 2019	57.97%	Holding company

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Note 3 - Property and Equipment, Net

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

3. Property and equipment, net

Property and equipment consist of the following:

	December 31,			March 31,
	2019			2020
	$			$
				(Unaudited)
Office equipment		150			161
Laboratory equipment		114			113
Motor vehicles		23			22
Leasehold improvements		103			103
		390			399
Less: accumulated depreciation		(181	)		(196	)
Property and equipment, net		209			203

Depreciation expenses for the

three

months ended

March 31, 2019

and

2020

were

$23

and

$15,

respectively.

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Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss for the Three Months Ended March 31, 2019 and 2020 - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue
Operating expenses:
Research and development	(13,704)	(6,330)
Selling, general and administrative	(2,928)	(1,639)
Loss from operations	(16,632)	(7,969)
Foreign exchange gain (loss), net	(74)	173
Interest income	64	6
Interest expense	(21)	(37)
Other income	1
Loss before income tax	(16,662)	(7,827)
Income tax benefit	0	0
Net loss	(16,662)	(7,827)
Less: Net loss attributable to noncontrolling interests	(578)	(534)
Net loss attributable to BeyondSpring Inc.	$ (16,084)	$ (7,293)
Net loss per share
Basic and diluted (in dollars per share)	$ (0.58)	$ (0.32)
Weighted-average shares outstanding
Basic and diluted (in shares)	27,732,449	23,029,362
Other comprehensive loss
Foreign currency translation adjustment (loss) gain	$ 53	$ (194)
Comprehensive loss	(16,609)	(8,021)
Less: Comprehensive loss attributable to noncontrolling interests	(582)	(575)
Comprehensive loss attributable to BeyondSpring Inc.	$ (16,027)	$ (7,446)

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Note 4 - Long-term Loans (Details Textual) $ in Thousands, ¥ in Millions	Mar. 28, 2019 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Mar. 28, 2019 CNY (¥)
Long-term Debt, Total		$ 1,413	$ 1,436
Term Loan [Member] | China Construction Bank [Member]
Debt Instrument, Term (Year)	3 years
Long-term Debt, Total	$ 1,493			¥ 10
Term Loan [Member] | China Construction Bank [Member] | Three Yearr Loan Interest Rate Quoted by People's Bank of China [Member]
Debt Instrument, Annual Interest Rate Based on Variable Rate	120.00%

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Note 7 - Equity (Tables)

3 Months Ended

Mar. 31, 2020

Notes Tables

Schedule of Stockholders Equity [Table Text Block]

	BeyondSpring Inc.’s shareholders
										Accumulated
					Additional					other						Non			Total
	Ordinary share				paid-in		Accumulated			comprehensive			Subtotal			controlling			equity
	Shares		Amount		capital		deficit			(loss) gain						interests			(deficit)
			$		$		$			$			$			$			$
Balances at January 1, 2020 (audited)		27,885,613		3		246,979		(216,845	)		140			30,277			854			31,131
Share-based compensation		3,293		-		3,438		-			-			3,438			32			3,470
Foreign currency translation adjustment (loss) gain		-		-		-		-			57			57			(4	)		53
Net loss		-		-		-		(16,084	)		-			(16,084	)		(578	)		(16,662	)
Balances at March 31, 2020 (unaudited)		27,888,906		3		250,417		(232,929	)		197			17,688			304			17,992
Balances at January 1, 2019 (audited)		23,184,612		2		170,950		(178,760	)		42			(7,766	)		(1,616	)		(9,382	)
Share-based compensation		-		-		371		-			-			371			-			371
Foreign currency translation adjustment loss		-		-		-		-			(153	)		(153	)		(41	)		(194	)
Net loss		-		-		-		(7,293	)		-			(7,293	)		(534	)		(7,827	)
Balances at March 31, 2019 (unaudited)		23,184,612		2		171,321		(186,053	)		(111	)		(14,841	)		(2,191	)		(17,032	)

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Note 1 - Nature of the Business and Basis of Preparation - Schedule of Subsidiaries (Details)	Mar. 31, 2020
BeyondSpring Pharmaceuticals Inc. [Member]
Equity method investment, ownership percentage	100.00%
BeyondSpring Ltd. [Member]
Equity method investment, ownership percentage	100.00%
BeyondSpring HK [Member]
Equity method investment, ownership percentage	100.00%
Wanchun Biotechnology Limited [Member]
Equity method investment, ownership percentage	100.00%
Wanchun Biotechnology (Shenzhen) Ltd. [Member]
Equity method investment, ownership percentage	100.00%
Dalian Wanchunbulin Pharmaceuticals Ltd. (“Wanchunbulin”) [Member]
Equity method investment, ownership percentage	57.97%
BeyondSpring Pharmaceuticals Australia PTY Ltd. (“BeyondSpring Australia”) [Member]
Equity method investment, ownership percentage	100.00%
Beijing Wanchun Pharmaceutical Technology Ltd. [Member]
Equity method investment, ownership percentage	57.97%
SEED Therapuetics Inc. [Member]
Equity method investment, ownership percentage	100.00%
SEED Technology Limited [Member]
Equity method investment, ownership percentage	57.97%

XML

Note 8 - Restricted Net Assets

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Restricted Assets Disclosure [Text Block]

8. Restricted net assets

As a result of PRC laws and regulations, the Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company. As of

December 31, 2019

and

March 31, 2020,

amounts restricted were the net assets of the Company’s PRC subsidiaries, which amounted to

$2,032

and

$329,

respectively.

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Note 12 - Share-based Compensation

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

12. Share-based compensation

During the

three

months ended

March 31, 2020,

the Company granted a total of

381,301

share options and

3,293

restricted shares, respectively.

The following table summarizes total share-based compensation expense recognized for the

three

months ended

March 31, 2019

and

2020:

	Three months ended March 31,
	2019		2020
	$		$
	(Unaudited)		(Unaudited)
Research and development		156		3,183
Selling, general and administrative		215		287
Total		371		3,470

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Note 9 - Employee Defined Contribution Plan (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Defined Contribution Plan, Cost	$ 26	$ 15

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Note 5 - Related Party Transactions (Details Textual) $ in Thousands, ¥ in Millions	1 Months Ended		3 Months Ended
	Feb. 28, 2020 USD ($)	Feb. 28, 2020 CNY (¥)	Dec. 31, 2019 USD ($)	Dec. 31, 2019 CNY (¥)
Dalian Wanchun Biotechnology Co., Ltd. [Member]
Proceeds from Short-term Debt, Total	$ 14	¥ 0.1	$ 29	¥ 0.2

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Note 12 - Share-based Compensation - Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Allocated Share-based Compensation Expense	$ 3,470	$ 371
Research and Development Expense [Member]
Allocated Share-based Compensation Expense	3,183	156
General and Administrative Expense [Member]
Allocated Share-based Compensation Expense	$ 287	$ 215

XML

Note 7 - Equity

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

7. Equity

The movement of equity is as follows

:

	BeyondSpring Inc.’s shareholders
										Accumulated
					Additional					other						Non			Total
	Ordinary share				paid-in		Accumulated			comprehensive			Subtotal			controlling			equity
	Shares		Amount		capital		deficit			(loss) gain						interests			(deficit)
			$		$		$			$			$			$			$
Balances at January 1, 2020 (audited)		27,885,613		3		246,979		(216,845	)		140			30,277			854			31,131
Share-based compensation		3,293		-		3,438		-			-			3,438			32			3,470
Foreign currency translation adjustment (loss) gain		-		-		-		-			57			57			(4	)		53
Net loss		-		-		-		(16,084	)		-			(16,084	)		(578	)		(16,662	)
Balances at March 31, 2020 (unaudited)		27,888,906		3		250,417		(232,929	)		197			17,688			304			17,992
Balances at January 1, 2019 (audited)		23,184,612		2		170,950		(178,760	)		42			(7,766	)		(1,616	)		(9,382	)
Share-based compensation		-		-		371		-			-			371			-			371
Foreign currency translation adjustment loss		-		-		-		-			(153	)		(153	)		(41	)		(194	)
Net loss		-		-		-		(7,293	)		-			(7,293	)		(534	)		(7,827	)
Balances at March 31, 2019 (unaudited)		23,184,612		2		171,321		(186,053	)		(111	)		(14,841	)		(2,191	)		(17,032	)

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Note 11 - Supplemental Balance Sheet Information

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Supplemental Balance Sheet Disclosures [Text Block]

11. Supplemental balance sheet information

Other current liabilities consist of the following:

	As of December 31,		As of March 31,
	2019		2020
	$		$
			(Unaudited)
Compensation related		226		207
Professional services		-		543
Other taxes related		798		810
Other		65		125
Total		1,089		1,685

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Note 10 - Net Loss Per Share - Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Net loss attributable to BeyondSpring Inc.—basic and diluted	$ (16,084)	$ (7,293)
Weighted average number of ordinary shares outstanding—basic and diluted (in shares)	27,732,449	23,029,362
Net loss per share —basic and diluted (in dollars per share)	$ (0.58)	$ (0.32)

XML

Note 6 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Expense (Benefit), Total	$ 0	$ 0

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Document And Entity Information	3 Months Ended
	Mar. 31, 2020
Document Information [Line Items]
Entity Registrant Name	BeyondSpring Inc.
Entity Central Index Key	0001677940
Current Fiscal Year End Date	--12-31
Document Type	6-K
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

Unaudited Interim Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2019 and 2020 - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating activities:
Net loss	$ (16,662)	$ (7,827)
Adjustments to reconcile net loss to net cash from operating activities:
Share-based compensation	3,470	371
Depreciation expenses	15	23
Changes in operating assets and liabilities:
Advances to suppliers	135	143
Due from related parties		100
Prepaid expenses and other current assets	(42)	123
Operating lease right-of-use assets	(69)	134
Other noncurrent assets	5	(60)
Accounts payable	2,603	(620)
Accrued expenses	(1,164)	2,377
Operating lease liabilities	63	(56)
Other current liabilities	596	232
Net cash used in operating activities	(11,050)	(5,060)
Investing activities:
Acquisitions of property and equipment	(9)	(4)
Net cash used in investing activities	(9)	(4)
Financing activities:
Proceeds from loans		2,986
Loans from related parties	14	350
Net cash provided by financing activities	14	3,336
Effect of foreign exchange rate changes, net	29	(200)
Net decrease in cash and cash equivalents	(11,016)	(1,928)
Cash at beginning of period	35,933	3,889
Cash at end of period	$ 24,917	$ 1,961

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Note 4 - Long-term Loans

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Long-term Debt [Text Block]

4. Long-term loans

On

March 28, 2019,

the Company borrowed a

three

-year term loan with a principal amount of

$1,493

(

RMB10,000

) from China Construction Bank, which bears an annual interest rate of

120.0%

of the

three

-year loan interest rate quoted by the People’s Bank of China. The loan is guaranteed by the shareholder of the Company, Shenzhen Sangel Capital Management Limited Company (“Shenzhen Sangel”) and Mr. Mulong Liu, a shareholder of Shenzhen Sangel. The maturity date of the loan is

March 28, 2022.

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Note 3 - Property and Equipment, Net (Tables)

3 Months Ended

Mar. 31, 2020

Notes Tables

Property, Plant and Equipment [Table Text Block]

	December 31,			March 31,
	2019			2020
	$			$
				(Unaudited)
Office equipment		150			161
Laboratory equipment		114			113
Motor vehicles		23			22
Leasehold improvements		103			103
		390			399
Less: accumulated depreciation		(181	)		(196	)
Property and equipment, net		209			203

XML

Note 12 - Share-based Compensation (Tables)

3 Months Ended

Mar. 31, 2020

Notes Tables

Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]

	Three months ended March 31,
	2019		2020
	$		$
	(Unaudited)		(Unaudited)
Research and development		156		3,183
Selling, general and administrative		215		287
Total		371		3,470

XML

Note 3 - Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Property, plant, and equipment, gross	$ 399	$ 390
Less: accumulated depreciation	(196)	(181)
Property and equipment, net	203	209
Office Equipment [Member]
Property, plant, and equipment, gross	161	150
Laboratory Equipment [Member]
Property, plant, and equipment, gross	113	114
Automobiles [Member]
Property, plant, and equipment, gross	22	23
Leasehold Improvements [Member]
Property, plant, and equipment, gross	$ 103	$ 103